May 8, 2006
Minneapolis Star Tribune

Firm knows score on e-tail fraud

About one-third of all legitimate credit card transactions involve shipping goods somewhere other than a credit card customer's home address. One way to distinguish honest card users from crooks is to calculate the distance in miles between the home address and shipping address. The greater the distance, the more likely the transaction is fraudulent. XTech, a two-year-old firm uses database technology to identify suspect credit card transactions, then sells that information to e-commerce companies and direct-marketers who sell online and through the mail. Both rely heavily on credit card use by people they never see.